New Delhi, March 26: India's largest carmaker, Maruti Suzuki Ltd, on Wednesday announced an investment of Rs 7,410 crore to build a third factory at Kharkhoda in Haryana, to expand production capacity to meet the rising domestic demand as well as exports.

The company's Board of Directors at a meeting held on Wednesday approved the establishment of a third plant at Kharkhoda, which will have a production capacity of 2.5 lakh vehicles per year, Maruti Suzuki said in a stock exchange filing.

The factory is expected to start production by 2029 taking the total capacity at Kharkhoda to 7.5 lakh vehicles a year.

The investment will be funded through internal accruals. The Kharkhoda plant is a greenfield project where the first factory started commercial operations in February this year to produce the compact SUV Brezza.

Suzuki Motor Corporation of Japan, the parent company of Maruti Suzuki India, had last month announced a new mid-term plan with a "rethink" in its strategy as "the business environment has changed due to declining market share in India" and the growing electric vehicles segment.

In its new mid-term plan for 2025-30, the company has identified India as its “most important market.” Maruti Suzuki aims to create a manufacturing capacity of producing 4 million cars annually to reclaim a 50 per cent market share in India and use the country as a global export hub as well.

The auto major plans to expand its EV lineup starting with the e-Vitara, and is aiming to launch four new EV models by FY30 in a segment where its rivals like Tata Motors and Mahindra & Mahindra already have a varied EV portfolio in India.

Meanwhile, Maruti Suzuki reported a 16 per cent increase in net profit to Rs 3,727 crore for the October-December quarter of the current financial year compared to the corresponding figure of Rs 3,206.8 crore in the same quarter last year.

The company’s revenue from operations rose 15.7 per cent year-on-year to Rs 38,764.3 crore on the back of higher sales from Rs 33,512.8 crore in the same quarter of the previous year. (IANS)

Read More Business News

Argus News | argus news | Odisha Latest News, Breaking News, Trending News, Live TV